Lets read the recent financial news again. The U.S govt is ?suing? its banks for the subprime damages [2008] NOW? [2011], intervention in bond markets to lower rates to counter slowing signs? and QE3 [quantitative easing - print money] in the next six months?
Here's an argument:
Rex: Wow! The U.S government is finally doing something about the bad guys! Serve them right..give me back my money!"
Stockrats: That's indeed a very drastic move to get justice back.
Rex: Whatever it takes, sue them!
Stockrats: But don't you think this a little punishing for the rest of world? This whole legal stuff is again an unprecedented event of our economic history. That will cause the markets to whipsaw like crazy. It is going to be a very stressful episode for the stock markets and even economies.
Rex: Why so? Look stockrats..don't be a pessimist will you? Look at the bright side. They sue the banks, get some quick money, and for this fiscal year, U.S govt will have a surplus for the first time in history! That is a cool alternative to Mr Buffet's suggestion to up the tax on mega rich! Hmmm...and how should they account for this as income on its ...report? extraordinary tax?
Stockrats: The world is getting smaller and appetite is getting bigger. Most of us in the region are quite contented with the current recovery pace. One or two month of non-growth in employment isn't bad enough to justify such a dramatic call for intervention and suggestion of further QE..3.
Anyone who knows a little about economy dynamics would know the best medicine to ailing state of economies besides monetary/fiscal tactics...is CONSUMER CONFIDENCE. It is the most rudimentary and elementary. Rock it and no matter how you 'fiscal and monetary' it will not help. Boost it and the world can turn a 10 year recession around in one day. Economy is a bunch of complex theories for the academics. Truth is, there is no magic about it.
And so, as we look at all those recent announcements, it somewhat poses a huge ?? and !! on whether they are really trying to save or damage the recovery momentum. We aren't economists and hold no Ph.d-s, but a simple approach to look at this is just IMAGINE...this:
The world hears nothing from the U.S at all....no media reports just for another 6 months. Would the merry that the world is enjoying now continue and the CONSUMER CONFIDENCE continue to drive the recovery? Maybe no, but certainly it wouldn't nosedive all of a sudden from shocking 'news and announcements" like these recent ones yeah?
REX: So, you don't agree that there would be a possible recession and QE is appropriate?
Stockrats: Well, the probability of full recovery is higher than us going into another recession had they not brought it up.
Rex: Hmmm...that makes me start to wonder why they rock the boat at this time? Because ...of blah blah this? or blah blah that? BUT What have they to gain by rocking the boat?
Rex: Nah, their economy is really bad, our world's economy is worse, I haven't had a pay rise since 1996. What could be worse? Look at me! I am only driving a Ferrari, live me a Beverly Penthouse and my only passive income comes from the miserly rental of my small bungalow at the hillside. I should now buy GOLD to protect my savings against recession and low interest rates. Because if the banks are sued, what about the local banks? the other banks and the world bank? are they gonna be sued for the same??? and if the recession really comes, and they really QE3 and then ....typhoon hits..and then here flood there flood, and then Oil price shoots up again and then all the BAD BAD things seem to happen at one instant when gold is 'only' 1,880 USD today http://www.goldprice.org/, there are just too many BAD BAD repercussions !!! everybody is sure to rush for more gold...so I better believe GOLD is the safest haven now! Besides, I am still a big Fan of Ben Bernanke and Obama....they rock!!!
Stockrats: Its is the Beginning of the END. The Finale...Be careful for an ounce may crush you. Unless you want to be a GUINNESS World record holder of being the person who bought the most expensive gold ...wakakakaa!
Rex: Did you guys eat fish all day? your breathe smells fissshhhhyyyy.
PLEASE DO NOT TAKE THIS DIALOGUE TOO SERIOUSLY. IT IS FOR ENTERTAINMENT PURPOSE ONLY. BESIDES, SILLY COMMENTS LIKE THESE SOMETIMES MAKES YOU LAUGH AND GOOD FOR HEALTH?!
Here's an argument:
Rex: Wow! The U.S government is finally doing something about the bad guys! Serve them right..give me back my money!"
Stockrats: That's indeed a very drastic move to get justice back.Rex: Whatever it takes, sue them!
Stockrats: But don't you think this a little punishing for the rest of world? This whole legal stuff is again an unprecedented event of our economic history. That will cause the markets to whipsaw like crazy. It is going to be a very stressful episode for the stock markets and even economies.
Rex: Why so? Look stockrats..don't be a pessimist will you? Look at the bright side. They sue the banks, get some quick money, and for this fiscal year, U.S govt will have a surplus for the first time in history! That is a cool alternative to Mr Buffet's suggestion to up the tax on mega rich! Hmmm...and how should they account for this as income on its ...report? extraordinary tax?
Stockrats: The world is getting smaller and appetite is getting bigger. Most of us in the region are quite contented with the current recovery pace. One or two month of non-growth in employment isn't bad enough to justify such a dramatic call for intervention and suggestion of further QE..3.
Anyone who knows a little about economy dynamics would know the best medicine to ailing state of economies besides monetary/fiscal tactics...is CONSUMER CONFIDENCE. It is the most rudimentary and elementary. Rock it and no matter how you 'fiscal and monetary' it will not help. Boost it and the world can turn a 10 year recession around in one day. Economy is a bunch of complex theories for the academics. Truth is, there is no magic about it.
And so, as we look at all those recent announcements, it somewhat poses a huge ?? and !! on whether they are really trying to save or damage the recovery momentum. We aren't economists and hold no Ph.d-s, but a simple approach to look at this is just IMAGINE...this:
The world hears nothing from the U.S at all....no media reports just for another 6 months. Would the merry that the world is enjoying now continue and the CONSUMER CONFIDENCE continue to drive the recovery? Maybe no, but certainly it wouldn't nosedive all of a sudden from shocking 'news and announcements" like these recent ones yeah?
REX: So, you don't agree that there would be a possible recession and QE is appropriate?
Stockrats: Well, the probability of full recovery is higher than us going into another recession had they not brought it up.
Rex: Hmmm...that makes me start to wonder why they rock the boat at this time? Because ...of blah blah this? or blah blah that? BUT What have they to gain by rocking the boat?
Rex: Nah, their economy is really bad, our world's economy is worse, I haven't had a pay rise since 1996. What could be worse? Look at me! I am only driving a Ferrari, live me a Beverly Penthouse and my only passive income comes from the miserly rental of my small bungalow at the hillside. I should now buy GOLD to protect my savings against recession and low interest rates. Because if the banks are sued, what about the local banks? the other banks and the world bank? are they gonna be sued for the same??? and if the recession really comes, and they really QE3 and then ....typhoon hits..and then here flood there flood, and then Oil price shoots up again and then all the BAD BAD things seem to happen at one instant when gold is 'only' 1,880 USD today http://www.goldprice.org/, there are just too many BAD BAD repercussions !!! everybody is sure to rush for more gold...so I better believe GOLD is the safest haven now! Besides, I am still a big Fan of Ben Bernanke and Obama....they rock!!!
Stockrats: Its is the Beginning of the END. The Finale...Be careful for an ounce may crush you. Unless you want to be a GUINNESS World record holder of being the person who bought the most expensive gold ...wakakakaa!
Rex: Did you guys eat fish all day? your breathe smells fissshhhhyyyy.
PLEASE DO NOT TAKE THIS DIALOGUE TOO SERIOUSLY. IT IS FOR ENTERTAINMENT PURPOSE ONLY. BESIDES, SILLY COMMENTS LIKE THESE SOMETIMES MAKES YOU LAUGH AND GOOD FOR HEALTH?!
0 comments:
Post a Comment